SOLUTION: Jack needs $6000 in 6 years from today to buy a holiday. He invests $2800 today. Find the effective annual rate of interest that Jack needs to earn on this amount (as a %, 2 decima

Question 1161015: Jack needs $6000 in 6 years from today to buy a holiday. He invests $2800 today. Find the effective annual rate of interest that Jack needs to earn on this amount (as a %, 2 decimal places) in order to reach his goal.
Answer by ikleyn(52787) (Show Source): You can put this solution on YOUR website!
.


6000 = 


 = 


2.142857 = 


 = 1 + x


1.135444 = 1 + x


x = 0.135444   = 0.1354 (rounded) = 13.54%.    ANSWER


You may round it as you need.

Solved.

RELATED QUESTIONS
Jack needs $5100 in 6 years from today to buy a holiday. He invests $2300 today. Find the (answered by Theo)

You deposit $1,500 in the bank today. After 5 years, you are able to withdraw $2,163.48. (answered by lynnlo)

The annual inflation rate is 3.8% per year. If a movie ticket costs $9.50 today, find a... (answered by Finavon)

Please help with this question, many thanks. Lily invested $50,000 in a boutique 4 years (answered by rothauserc)

The amount a person would need to deposit today to be able to withdraw $6000 each year... (answered by Fombitz)

Jamie wants to have P45,000 in 2 years to buy a new computer, how much money should he... (answered by ikleyn)

An investment consultant has deposited $5000 of a clients money into a 10% simple interes (answered by stanbon)

Ok i have missed 18 days of school. So im completely lost on this. Im trying to get work... (answered by solver91311)

If Jack adds his current age to the age he will be next year on this date, the sum is 17... (answered by josmiceli)